Construct the cost of living Index number for 2015 on the basis of 2012 from the following data using family budget method. | Commodity | Price 2012 | Price 2015 | Weights | | --- | --- | --- | --- | | Rice | $250$ | $280$ | $10$ | | Wheat | $70$ | $85$ | $5$ | | Corn | $150$ | $170$ | $6$ | | Oil | $25$ | $35$ | $4$ | | Dhal | $85$ | $90$ | $3$ |

> > [!TLDR] > Compute price relatives $P=(p_1/p_0)\times100$, weight them, and take $\sum PW/\sum W\approx 117.31$. > > Using the family-budget method, the cost-of-living index number is > $$\text{C.L.I.}=\frac{\sum PW}{\sum W},\qquad P=\frac{p_1}{p_0}\times100.$$ > > | Commodity | $p_0$ | $p_1$ | $P=\frac{p_1}{p_0}\times100$ | $W$ | $PW$ | > | --- | --- | --- | --- | --- | --- | > | Rice | 250 | 280 | 112.00 | 10 | 1120.00 | > | Wheat | 70 | 85 | 121.43 | 5 | 607.14 | > | Corn | 150 | 170 | 113.33 | 6 | 680.00 | > | Oil | 25 | 35 | 140.00 | 4 | 560.00 | > | Dhal | 85 | 90 | 105.88 | 3 | 317.65 | …

Construct the cost of living Index number for 2015 on the basis of 2012 from the following data using family b

Question 21 of 39

Construct the cost of living Index number for 2015 on the basis of 2012 from the following data using family budget method.

Commodity	Price 2012	Price 2015	Weights
Rice	$250$	$280$	$10$
Wheat	$70$	$85$	$5$
Corn	$150$	$170$	$6$
Oil	$25$	$35$	$4$
Dhal	$85$	$90$	$3$

Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2022Subjective· 3mImportance★★★★★

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Compute price relatives $P=(p_1/p_0)\times100$ , weight them, and take $\sum PW/\sum W\approx 117.31$ .

Using the family-budget method, the cost-of-living index number is

$\text{C.L.I.}=\frac{\sum PW}{\sum W},\qquad P=\frac{p_1}{p_0}\times100.$

Commodity	$p_0$	$p_1$	$P=\frac{p_1}{p_0}\times100$	$W$	$PW$
Rice	250	280	112.00	10	1120.00
Wheat	70	85	121.43	5	607.14
Corn	150	170	113.33	6	680.00
Oil	25	35	140.00	4	560.00
Dhal	85	90	105.88	3	317.65

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